Federal Register / Vol. 72, No.
170 / Tuesday, September 4, 2007 / Rules and Regulations
Plain Language
Section 722 of the Gramm-Leach-
Bliley Act (12 U.S.C. 4809) requires the
Agencies to use ‘‘plain language’’ in all
final rules published after January 1,
2000. OTS believes that the final rule
containing the extension is presented in
a clear and straightforward manner.
List of Subjects in 12 CFR Part 585
Administrative practice and
procedure, Holding companies,
reporting and recordkeeping
requirements, savings associations.
Authority and Issuance
■ For the reasons in the preamble, OTS
is amending part 585 of chapter V of
title 12 of the Code of Federal
Regulations as set forth below:
PART 585—PROHIBITED SERVICE AT
SAVINGS AND LOAN HOLDING
COMPANIES
■ 1. The authority citation for 12 CFR
part 585 continues to read as follows:
Authority: 12 U.S.C. 1462, 1462a, 1463,
1464, 1467a, and 1829(e).
■ 2. Revise § 585.100(b)(2) introductory
text to read as follows:
§ 585.100 Who is exempt from the
prohibition under this part?
* * * * * Commission has issued the following
(b) Temporary exemption. * * *
* * * * * 30.10 recipient must: (1) Prohibit its
(2) This exemption expires on March
1, 2008, unless the savings and loan
holding company or the person files an
application seeking a case-by-case
exemption for the person under
§ 585.110 by that date. If the savings and
loan holding company or the person
files such an application, the temporary
exemption expires on:
* * * * * futures or foreign options.
Dated: August 28, 2007.
By the Office of Thrift Supervision.
John M. Reich,
Director.
[FR Doc. E7–17459 Filed 8–31–07; 8:45 am]
BILLING CODE 6720–01–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 30
Foreign Futures and Options
Transactions
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AGENCY: Commodity Futures Trading
Commission.
ACTION: Amended Supplemental Order
for Expanded Relief.
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50645
SUMMARY: The Commodity Futures
Trading Commission (‘‘Commission’’) is
issuing an Amended Supplemental
Order authorizing members of
Singapore Derivatives Trading Ltd
(‘‘SGX’’), formerly known as Singapore
International Monetary Exchange Ltd
(‘‘SIMEX’’), to solicit and accept orders
from U.S. customers for otherwise
permitted transactions on all non-U.S.
exchanges where such members are
authorized by the laws of Singapore to
conduct futures business for customers.
The Amended Supplemental Order is
issued pursuant to Commission
Regulation 30.10, which permits the
Commission to grant an exemption from
certain provisions of Part 30 of the
Commission’s regulations, and
supersedes the Commission’s prior
Supplemental Order dated September 9,
1999.
EFFECTIVE DATE: September 4, 2007.
FOR FURTHER INFORMATION CONTACT:
Lawrence B. Patent, Deputy Director, or
Andrew Chapin, Special Counsel,
Division of Clearing and Intermediary
Oversight, at (202) 418–5430,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street, NW., Washington, DC
20581. Electronic mail: lpatent@cftc.gov
or achapin@cftc.gov.
SUPPLEMENTARY INFORMATION: The
Order:
Amended Supplemental Order
Granting Expanded Relief Pursuant to
Commission Regulation 30.10 for
Otherwise Permitted Transactions on
All Non-U.S. Exchanges Where Firms
Designated by the Singapore
Derivatives Trading Ltd Are Authorized
by Exchange Regulations To Conduct
Futures Business for Customers, Subject
to Certain Conditions
On December 30, 1988, the
Commission issued an Order granting
relief under Regulation 30.10
authorizing designated members of SGX
to solicit and accept orders from
customers located in the U.S. for
otherwise permitted transactions on the
Exchange.1 On September 9, 1999, the
Commission issued a Supplemental
Order expanding the relief to include
otherwise permitted transactions on
Eurex Deutschland.2 By letter dated
1 54 FR 806 (January 10, 1989) (‘‘Original Order’’).
2 64
FR 50248 (September 16, 1999)
(‘‘Supplemental Order’’). In December 1999, SIMEX
merged with the Stock Exchange of Singapore to
form a holding company named the Singapore
Exchange Limited (‘‘SEL’’). SIMEX was renamed
SGX and currently operates two exchanges as a
wholly-owned subsidiary of SEL. The first market,
called SGX–DT, is dedicated to trading financial
futures and option contracts. The second market,
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November 30, 2006, SEL petitioned the
Commission on behalf of SGX to amend
the Supplemental Order to permit
members designated by SGX to solicit
and accept orders from foreign futures
and options customers 3 for otherwise
permitted transactions on all non-U.S.
exchanges 4 where Exchange Members
are authorized by Singapore law to
conduct futures and options business
for customers, subject to SGX and SGX
Members’ continued compliance with
the terms of the Original Order and with
certain specified conditions.5
On occasion, the Commission has
issued Regulation 30.10 orders and/or
supplemental orders that permitted
members of an exchange with
confirmation of Regulation 30.10 relief
to trade on behalf of U.S. customers on
other authorized or designated
exchanges outside the jurisdiction of the
Regulation 30.10 recipient.6 To ensure
that U.S. customers receive adequate
protection for transactions
intermediated by non-U.S. persons on or
subject to the rules of a foreign exchange
located outside the jurisdiction of a
Regulation 30.10 recipient, the
Commission requires the jurisdiction to
which the Regulation 30.10 order is
directed to demonstrate that such
transactions will be regulated as if they
were executed on an exchange located
within the recipient’s jurisdiction.7 To
make this demonstration, the Regulation
regulatees or members from
intermediating otherwise permitted
transactions for U.S. customers on
unapproved foreign exchanges as set
called JADE, is the result of a joint venture with the
Chicago Board of Trade, Inc., to trade commodity
futures and option contracts.
3 The term ‘‘foreign futures or foreign options
customer’’ means any person located in the U.S., its
territories or possessions, who trades in foreign
4 The term ‘‘non-U.S. exchange’’ refers to a
foreign board of trade which is defined in
Commission Regulation 1.3(ss), 17 CFR 1.3(ss) as:
Any board of trade, exchange or market located
outside the United States, its territories or
possessions, whether incorporated or
unincorporated, where foreign futures or foreign
options transactions are entered into. Thus,
contracts that are traded on a market that has been
designated as a contract market pursuant to section
5 of the Commodity Exchange Act (‘‘Act’’) are not
within the scope of this Order.
5 Letter dated November 30, 2006, from Arul
Ramiah, Head, Regulatory Policy for SEL, to
Ananda K. Radhakrishnan, Director, Division of
Clearing and Intermediary Oversight.
6 See, e.g., 71 FR 40395 (July 17, 2006)
(authorizing members of the Sydney Futures
Exchange (‘‘SFE’’) to solicit and accept orders from
U.S. customers for otherwise permitted transactions
on all non-U.S. and non-Australian exchanges
where such members are authorized by the
regulations of the SFE to conduct futures business
for customers).
7 64 FR at 50251.
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 50646 Federal Register / Vol. 72, No. 170 / Tuesday, September 4, 2007 / Rules and Regulations
forth under local law, and must specify
which exchanges are authorized by local
law; (2) represent that regulatees or
member firms with U.S. customers will
comply with all the terms and
conditions of the original Regulation
30.10 Order with respect to transactions
entered into on or subject to the rules of
a foreign exchange located outside its
jurisdiction; and (3) confirm that it has
the authority and the ability to enforce
its laws, rules and/or regulations with
respect to those transactions to the same
extent that it conducts such activities on
an exchange located within its
jurisdiction. The Regulation 30.10
recipient also should specify in its
application if there does not exist a
specific statute or regulation setting
forth a list of authorized or recognized
exchanges.8
Upon due consideration, the
Commission has determined to issue
this Amended Supplemental Order
permitting SGX Members to which
Regulation 30.10 relief has been
confirmed by the Commission or by the
National Futures Association (‘‘NFA’’)
to solicit and to accept orders from U.S.
customers for otherwise permitted
transactions in commodity futures and
commodity options (including options
on futures) on or subject to the rules of
any non-U.S. exchange where such
members are authorized by the laws of
Singapore to conduct futures business
for customers.
The expanded Regulation 30.10 relief
provided under this Amended
Supplemental Order, however, is
contingent on the SGX members’
continued compliance with the Original
Order, and the SGX’s and SGX
Members’ compliance with the
following conditions:
(1) SGX will carry out its compliance,
surveillance and rule enforcement activities
with respect to solicitations and acceptance
of orders by designated Exchange Members of
U.S. customers for futures and options
business on all non-U.S. exchanges where
such members are authorized by the laws of
Singapore to conduct futures business for
customers to the same extent that it conducts
such activities in regard to SGX business;
(2) SGX will cooperate with the
Commission with respect to any inquiries
concerning any activity which is the subject
of this Amended Supplemental Order,
including sharing the information specified
in Appendix A to the Part 30 regulations, 17
CFR Part 30, on an ‘‘as needed basis,’’ on the
same basis as set forth in the Original Order;
8 Id. at n.20. See, e.g., 67 FR 30785 (May 8, 2002)
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(authorizing members of Eurex Deutschland
(‘‘Eurex’’) to solicit and accept orders from U.S.
customers for otherwise permitted transactions on
all non-U.S. exchanges where such members are
authorized by Eurex regulations and German law to
conduct futures business for customers).
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(3) Each SGX Member firm confirmed for
relief under the Original Order seeking to
engage in activities that are the subject of this
Amended Supplemental Order must agree to
provide the books and records related to such
activities required to be maintained under
the applicable SGX rules and laws in effect
in Singapore on the same basis as set forth
in the Original Order;
(4) SGX members who apply for
confirmation of Regulation 30.10 relief with
the National Futures Association must
provide and maintain a list of the foreign
exchanges where they intend to engage in
transactions on behalf of U.S. customers
pursuant to relief granted by this Amended
Supplemental Order and must agree to abide
by the terms and conditions of the Original
Order; and
(5) SGX will continue to comply with the
terms of the Original Order with respect to
transactions effected for U.S. customers on
SGX.
As set forth in the Commission’s
September 11, 1997 Order delegating to
NFA certain responsibilities, the written
representations set forth above shall be
filed with NFA.9 Specifically, SGX
Members applying for confirmation of
Regulation 30.10 relief subsequent to
the issuance of this Amended
Supplementary Order must submit
representations to NFA consistent with
condition (3) of this Order, and the list
of foreign exchanges required by
condition (4), as well as representations
required by the Original Order. SGX
Member firms that currently operate
under the Original Order will be
deemed to have consented to condition
(3) by effecting transactions pursuant to
this Amended Supplemental Order.
Each firm seeking relief hereunder has
an ongoing obligation to notify NFA
should there be a material change to any
of the representations required in the
firm’s application for relief, including
any change in the list of foreign
exchanges referred to in condition (4).
The expanded Regulation 30.10 relief
provided by this Amended
Supplemental Order remains subject to
the existing product restrictions under
the Act and Commission regulations
thereunder including those related to
stock indices, foreign government debt
and foreign security futures products.10
The expanded Regulation 30.10 relief
provided under this Amended
Supplemental Order also is contingent
upon the continued compliance by the
Monetary Authority of Singapore
(‘‘MAS’’) with the terms and conditions
of the information sharing arrangement
with the Commission regarding the
9 62 FR 47792, 47793 (September 11, 1997).
10 See, e.g., Sections 2(a)(1)(C), (D) and (E) of the
Act.
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Regulation 30.10 activities of the SGX
members.11
This Amended Supplemental Order is
issued based on the information
provided to the Commission and its
staff. Any changes or material omissions
may require the Commission to
reconsider the authorization granted in
this Amended Supplemental Order.
List of Subjects in 17 CFR Part 30
Commodity Futures, Commodity
Options, Foreign Futures and Options.
■ Accordingly, 17 CFR part 30 is
amended as set forth below:
PART 30—FOREIGN FUTURES AND
FOREIGN OPTIONS TRANSACTIONS
■ 1. The authority citation for part 30
continues to read as follows:
Authority: 7 U.S.C. 1a, 2, 4, 6, 6c and 12a,
unless otherwise noted.
Appendix C to Part 30—Foreign
Petitioners Granted Relief From the
Application of Certain of the Part 30
Rules Pursuant to § 30.10
* * * * *
■ 2. The citation ‘‘Firms designated by
the Singapore International Monetary
Exchange Limited’’ is to be revised as
follows:
Firms designated by the Singapore
Derivatives Trading Limited.
* * * * *
FR date and citation: [insert date of this
release], 72 FR [insert number of page on
which this release begins].
* * * * *
■ 3. The following citations are to be
added:
Firms designated by the Taiwan
Futures Exchange.
FR date and citation: March 28, 2007,
72 FR 14413.
Firms designated by the Tokyo
Commodity Exchange.
FR date and citation: February 9,
2006, 71 FR 6759.
Firms designated by the Bolsa de
Mercadorias & Futuros.
FR date and citation: July 8, 2002, 67
FR 45056.
Firms designated by Eurex
Deutschland.
FR date and citation: May 8, 2002, 67
FR 30785.
11 Letter from Neo Boon Sim, Head, Market and
Clearing Houses Division, MAS, to Ananda K.
Radhakrishnan, Director, Division of Clearing and
Intermediary Oversight, dated June 11, 2007. The
Commission signed a bilateral Memorandum of
Understanding (‘‘MOU’’) with MAS on May 16,
2000 concerning Consultation, Co-operation and the
Exchange of Information (concluded jointly with
the U.S. Securities and Exchange Commission). In
addition, MAS also is a signatory to the IOSCO
Multilateral MOU.
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 Federal Register / Vol. 72, No. 170 / Tuesday, September 4, 2007 / Rules and Regulations 50647

Issued in Washington, DC on August 24,

2007.
David Stawick,
Secretary of the Commission.
[FR Doc. E7–17195 Filed 8–31–07; 8:45 am]
BILLING CODE 6351–01–P
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